Five consumer trends in the dairy market and beyond

Food and beverage ingredient solutions provider IFF shares its report that uncovers five evolving consumer trends in the dairy and alternative dairy categories.

The report, derived from a quarterly global survey of 21,000 consumers and monthly market data, highlights how brands can win over budget-conscious consumers.

The report identified five key trends that will drive market changes:

1. Better-being

Health and wellness has been one of the most influential trends across the food and beverage space since the pandemic, and in 2024 it is predicted to continue to dominate in the dairy sector. Consumers feel more responsible for their own wellbeing and increasingly want products that can help them take a holistic, positive and proactive approach to their health. The research found that six in 10 respondents were “always” or “often” influenced by health labelling in their product choices.

2. Simple frugality

The research found that affordability has been the second most important consumer trend since the start of 2022, with the gap between low price and high quality shrinking as determinants of good value for money. Six in 10 consumers reported spending their money more carefully in the past 12 months, and frugality is now embraced with a sense of achievement. 52% of global consumers prefer to pay more for dairy to ensure quality is not compromised.

3. Neo-hedonism

Neo-hedonism — a shift towards pleasure-centric lifestyles — will be one of the key global movements impacting the overall food and beverage space in 2024. Research found that 50% of global consumers were rewarding themselves more than they did before the pandemic, seeking happiness and pleasure as everyday goals to bring delight and fun to their lives. In dairy, taste will remain king, particularly in categories associated with indulgence, such as ice cream, with product innovation appealing to differing aspects of the senses.

4. AI/human

Repeat purchases and loyalty depend on consumers making emotional connections to brands. There is a desire for the human touch, especially when technology is at the core of product delivery, so it is crucial to tell stories that create and reinforce human connections to the brand by speaking to consumers’ values and beliefs — 61% of surveyed consumers believe it is important to express personal values through their food purchases.

5. Responsible living

Eco-ethical values are now paramount, with consumers seeking to become responsible for the state of the planet. The research suggests they are increasingly aware of their personal impact on the world, with 67% surveyed saying that the effect their choices have on the planet is important.

Download the full report here.

Image credit: iStock.com/Elena Medoks